Interim Market Update

Wow- what a difference 8 weeks makes. The bifurcation of the Marin Real Estate market continues now reaching a fever pitch- the low end of the market is literally manic but the high end of the market continues quite slow ex. still no sales yet over $5m in Tiburon for the last 6 months and only 3 over the previous 12 months.

Meanwhile 67% of the homes for sale in Marin county under $1.5m are in contract… 30% of homes in the market in contract represents a balanced market.. This stat is really really high and represents a very strong sellers market in this price range.

The market for homes below $1.35m has now reached a frenzied bubble-like mania with many homes in this price range receiving 5-20 offers and selling 10% over asking and almost 20% over last year’s valuations. Homes in this price range are now selling significantly OVER the business cycle mean.

Ex. A Recent home in San Rafael received 9 offers (one was a client of The DuPont Group).

My Trailing 12 months Valuation of the property was $696,904
Suggested offer was $791,936
Offer Made: $800,000k 25 day close
Approximate Peak market Value (2007)$879,049
Offers higher than Peak Market Value were received

Buyers in this price range are advised to act with caution. A lack of inventory is meeting pent-up demand, combined with fear of increasing mortgage rates; and causing emotion to escalate pricing- very quickly.

The Marin market in many towns is temporarily “broken”- the only homes that are coming to market and selling are those in the lower range creating a temporary bottleneck of buyers in a narrow price range. The trade up sellers/buyers are not moving yet- prices apparently still don’t financially support that niche. As prices increase we will see more homes coming to market and likely increasing activity in the upper market ranges.

A little patience will likely save buyers 5%-10%… However and interestingly: with interest rates likely to incrementally rise the actual monthly affordability may not be greatly affected by waiting…

This entry was posted in 1. Marin Update, 2. Southern Marin, Central Marin, Northern Marin by dwdupont. Bookmark the permalink.

About dwdupont

David DuPont leads a team of real estate professionals (The DuPont Group) under the umbrella of Sotheby’s International Realty. In 2008-2010, Dave sold more homes than any other agent in the firm and brings over 15 years of business experiences to bear for the group including real estate transactions, internet marketing, search engine optimization, and finance. From 2011-2013 Dave continued to be a top producer not only in the Sotheby's office but also within the agent community.